The BBC's Alice Muthengi in Dar es Salaam says the protesters were told to go home and return on Wednesday, when it is hoped a resolution will be found.

Uchumi has several stores in Tanzania but it is not clear how many will be affected.

On Monday, Ugandan media reported that court bailiffs, acting on behalf of some suppliers, raided some of Uchumi's stores in the capital, Kampala, and seized property over the failure to settle its bills.

The retailer has suffered some huge loses in the last two years because of accusations of mismanagement, says Nairobi-based financial analyst Aly-Khan Satchu.

"It has been a challenging period for them because they found it difficult to compete in places away from Kenya - their primary market," he told the BBC.

These closures are part of the measures being introduced by newly appointed Chief Executive Julius Kipng'etich to revive the struggling retailer, he said.

The troubled chain has already sold some of its lucrative assets in Kenya to raise money as its struggles to get finance from banks.